There is much confusion in the economics literature on wage determination and the employment-inflation trade-off. Few model builders pay as much careful attention to the definition and meaning of long-run concepts as did Albert Ando. Expanding on years of painstaking work by Ando, the contributors elaborate on the main issues of economic analysis and policies that concerned him.
Some of the issues discussed include long-run properties of dynamic econometric models, demographic issues of modern times, stabilization policies - especially for Japan - and interaction between monetary and real economy issues, as well as life-cycle behavior patterns, and the appropriate role of the Phillips Curve and the determination of prices.
Paying close attention to the concepts and properties of models, Long-run Growth and Short Run Stabilization is for those interested in the macroeconomics of the US, Italy, and Japan. Scholars of aggregative dynamic models based on realistic reasoning will benefit from the information imparted, as will policymakers who want to understand the functioning of the modern economy.
Edited by the late Lawrence R. Klein, former Benjamin Franklin Professor of Economics Emeritus, University of Pennsylvania, US and 1980 Nobel Laureate in Economic Sciences
Contents: Preface 1. The Economics Legacy of Albert Ando Lawrence R. Klein 2. The Age-Saving Profile and the Life-Cycle Hypothesis Tullio Jappelli and Franco Modigliani 3. Do Capital Gains Affect Consumption? Estimates of Wealth Effects from Italian Households' Behavior Luigi Guiso, Monica Paiella and Ignazio Visco 4. Demographic Changes, Reforms to the Social Security System and Private Savings in Italy Sergio Nicoletti-Altimari 5. Do the Elderly Dissave in Japan? Charles Yuji Horioka 6. On Robust Monetary Policy Filippo Altissimo, Stefano Siviero and Daniele Terlizzese 7. The Euro and the Transmission of Monetary Policy Ignazio Angeloni and Michael Ehrmann 8. Monetary and Fiscal Policy in a Liquidity Trap Alan J. Auerbach and Maurice Obstfeld 9. A Three-Factor Yield Curve Model: Non-Affine Structure, Systematic Risk Sources and Generalized Duration Francis X. Diebold, Lei Ji and Canlin Li 10. The Over-Investment Hypothesis Fumio Hayashi 11. Designing Indexed Units of Account Robert J. Shiller 12. Land Prices and Business Fixed Investment in Japan Nobuhiro Kiyotaki and Kenneth D. West 13. Rationality, Behavior and Switching Idiosyncracies in the Euro-Dollar Exchange Rate Gabriella Cagliesi and Massimo Tivegna Index